Insurers Navigate Risks and Opportunities in 2024 Global Report

The 2024 Global Insurance Report offers an in-depth look at how insurers are adjusting to major global changes, from market volatility and regulatory risks to the impact of mega trends like demographic shifts and climate finance. One central finding highlights differing regional expectations on economic outcomes, with North America and EMEA regions optimistic about a potential economic soft landing, while Asia-Pacific and Latin America forecast more sustained or mixed economic conditions. Regulatory uncertainty and geopolitical fragmentation emerge as top concerns for insurers globally, especially as elections could reshape policy landscapes.

To manage risk and diversify, insurers are focusing on private debt and alternative assets, with 91% planning to increase their private market allocations within two years. Private debt is particularly appealing for yield potential and reduced volatility, with 41% of insurers intending to boost their investments in areas like infrastructure debt and direct lending. Another priority is funding the infrastructure gap, as insurers position themselves to finance essential projects in emerging markets, especially in renewable energy and clean technology sectors.

Technology adoption remains crucial as insurers look to improve asset-liability management (ALM) and strategic asset allocation with better analytics and integration of real-time data. Insurers also express increased confidence in investing in low-carbon initiatives, with nearly all surveyed firms setting specific emissions goals for their portfolios. Through these strategic shifts, insurers aim to strengthen resilience and capitalize on opportunities amid a dynamic financial landscape.